Tunisia’s foreign reserves fall to lowest level in four years

By Tarek Amara

TUNIS, June 8 (Reuters) – Tunisia’s foreign currency reserves have dropped to levels worth just 91 days of imports, their lowest in four years, central bank figures showed on Thursday.

Reserves fell to 21 billion dinars ($6.78 billion) by June 7, enough to cover 91 days of imports, compared with 123 days in the same period a year earlier.

The decline will increase pressure on Tunisia as talks with the International Monetary Fund over a $1.9 billion loan stall.

International lenders require a final deal with the IMF to lend to Tunisia, with the country trying to secure additional loans of around $5 billion this year.

But President Kais Saied has rejected what he describes as IMF diktats, including proposals to cut food and energy subsidies, saying it could cause acute social unrest.

Tunisians are suffering shortages of several food commodities such as rice, semolina, coffee and sugar, while doctors, pharmacists and patients say hundreds of medicines have disappeared from pharmacies.

Ordinary Tunisians and economists are afraid that the situation will rapidly worsen if authorities do not secure the foreign loans.

A trade deficit and the weakening of the local dinar have also eroded the reserves.